New Zealand - Settlement Procedures eDealings

This is an extract from the workflow practice manual for NZ solicitors to conduct a property settlement (handing over the cheques) and the following e-registration of the property instruments (the transfer and the discharge mortgage) - quite similar to performing a settlement by mail that occurs between city and country practitioners.

Step 7 – Settlement Arrangement
Settlement processes are very similar in the e-dealing environment to the manual environment, except reliance is on the electronic transaction rather than physical paper and there are no copies of documents to be faxed backwards and forwards. This step also involves checking that settlement funds have been deposited as expected, which is critical before moving on to the next step.
7.1 Process Description
Settlement of an e-dealing is conducted outside of Landonline. The only part of the process performed in Landonline is releasing instruments. This is covered in step 8.
7.2 Process Flow
Normal manual processes apply.
7.3 Workflow Impacts
No copies of faxes are required for this step. In face-to-face settlements there is an opportunity to see the documents being released on the screen at the Vendor’s solicitor’s office when handing over the cheque.

Step 8 – Release instruments
At this point in the process, the vendor’s PC (Primary Contact) releases each instrument to indicate that settlement has been completed. This process is similar in the manual environment to sending documents by DX or mail.
The CP (Conveyancing Professional) does not need to be involved in this step of the process. This is similar to the manual environment, where the CP will often leave the legal executive to settle and register without the need of supervision.
Note: It is important to check that settlement funds have been transferred correctly before completing this step. Firms may need to consider revising internal policies that govern settlement to ensure that instruments are only released once authorisation of settlement has been obtained.
8.1 Process Description
Any user from the same firm with the appropriate privileges can release an instrument. Before you can release an instrument it must first be certified and signed.
8.2 Process Flow
Once all instruments have been released in an edealing, it is ready to be submitted to LINZ for registration.
Editing a released e-dealing
If any party who has edit access to an e-dealing, edits an instrument that has been released, Landonline clears all certifications and signatures and provides an appropriate warning message. In this situation, each edited instrument must be re-certified and re-signed.
8.3 Workflow Impacts
• There is greater trust in the system as visibility of the transaction and its progress is high.
Reliance on the other party (as is the case in the manual environment) is reduced.
• There is no risk of physically losing documents.
• There is no risk of documents being un-registerable.
• Fewer settlements need to be delayed due to original documents being unavailable, as faxed documents can be relied upon.
• There are no agency charges on the discharge.
• There are no resubmission fees if an e-dealing is rejected.
• Pre-validation ensures that there is no chance of missing something required for registration.
• There is no chance of being fooled by ‘twink’ at the last minute!

Step 9 – Submit dealing
Once the purchaser’s PC has released all instruments, the e-dealing can be submitted to LINZ for registration.

Termininology
Primary Contact (PC)
This is the person responsible for the day-to-day management of the e-dealing. Normally, this would be a Legal Executive.
Conveyancing Professional (CP)
This is the person responsible for certifying and signing a specific instrument. They must be legally authorised to perform conveyancing services and hold a current practising certificate or be a licensed land broker. Normally, this would be the solicitor responsible for the dealing.